Thai Revenue Dept reclassifying digital tokensbackground-defaultbackground-default

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MONDAY, March 20, 2023
Thai Revenue Dept reclassifying digital tokens

Thai Revenue Dept reclassifying digital tokens

TUESDAY, December 13, 2022

The Revenue Department is drafting classification criteria for digital tokens to ensure that tax collection does not hinder digital-asset development, director-general Lavaron Sangsnit said on Sunday.

Certain kinds of digital tokens could be exempted from value-added tax (VAT), while others will not be subject to taxes like other forms of investment, Lavaron said.

He added that the new classification criteria will put each kind of token in a category based on its asset type.

“For example, tokens that can be traded like shares will be treated and taxed like shares. The same goes for tokens that can be used as debentures,” he said.

Lavaron said the classification criteria will also help investors to identify types of utility tokens according to their different uses.

In March, the government exempted VAT and personal income tax deduction on trade of cryptocurrencies and digital tokens until December 31 next year.

The measure aims to support development of infrastructure, payment systems and the digital economy.

Currently the Royal Decree on Digital Assets Business classifies digital assets as either cryptocurrencies or digital tokens.

It defines cryptocurrencies as electronic data units created as a medium of exchange for the acquisition of goods, services or other rights.

Digital tokens are defined as electronic data units specifying the right of a person to participate in an investment, or to acquire specific goods, services or other rights under an agreement between the issuer and the holder.

Separately, the Securities and Exchange Commission is preparing tighter controls on digital assets trading to protect investors after a series of high-profile bankruptcies in the global industry.